Indian billionaire Gautam Adani and his nephew Sagar Adani are at the center of a bombshell federal indictment in the United States, accusing them of orchestrating a massive bribery scheme. The U.S. Securities and Exchange Commission (SEC) has issued a summons against the Adani Group leaders, alleging they facilitated hundreds of millions in bribes while falsely presenting their company’s commitment to anti-bribery laws. The charges are linked to a $750 million bond offering, and the SEC is seeking monetary penalties and restrictions on the Adanis from holding executive roles in publicly traded companies.
According to the summons, filed Wednesday in the Eastern District of New York, the Adanis have 21 days to respond. The SEC’s allegations come alongside arrest warrants issued by federal prosecutors, who claim Gautam Adani and seven others engaged in a $265 million bribery scheme. The alleged misconduct reportedly helped secure lucrative power-supply contracts that would generate $2 billion in profits over 20 years, enabling the development of India's largest solar power project.
The Adani Group has dismissed the charges as "baseless," stating that they pertain to a single contract involving Adani Green Energy, which accounts for only 10% of the group’s business. The group’s Chief Financial Officer clarified that no other companies under the conglomerate have been implicated. However, the scandal has already triggered significant market repercussions, with billions wiped from the Adani Group’s market value.
This marks the second major crisis to hit Adani’s ports-to-power empire in two years, further tarnishing the reputation of one of the world’s wealthiest men. Adding to the fallout, Kenya's president has abruptly canceled a high-profile airport project involving the Adani Group, signaling growing international scrutiny.
The allegations against Adani underscore broader concerns about corporate governance and ethics within the global business elite. As the case unfolds, it could have far-reaching implications for Adani’s sprawling empire and its reputation on the world stage.
